Answer:
Dr Owner capital account $275
Cr Drawings Account $275
Explanation:
The initial entry was:
Dr Drawings $275
Cr Inventory $275
And the closing entry is to close the drawing account which is done by crediting the whole balance left in the drawing account and charging it to owner capital account. By doing so the drawing shows lowers the profit as the owner has not paid any cash and the drawing account closes at zero balance at the end of the year.
